The balance sheet for December 31, 2012, December 31, 2011, and the income statement for the year ended December 31, 2012, for Rocket Company follows. Assets Cash Accounts receivable, net Inventory Land Building and equipment Accumulated depreciation Total assets Rocket Company Balance Sheet December 31, 2012 and 2011 Liabilities and Stockholders' Equity Accounts payable 2012 2011 $ 25,000 $ 20,000 60,000 70,000 80,000 100,000 50,000 50,000 130,000* 115,000 (85.000) (70.000) $260.000 $285,000 Common stock Retained earnings Total liabilities and stockholders' equity 110,000***** 100,000 61,000 $260,000 84,000 $285,000 * During 2012 cash payments for building and equipment $15,000. ** During 2012 cash paid for retirement of notes payable $10,000. *** During 2012 cash received from issuance of stock. Rocket Company Income Statement For the Year Ended December 31, 2012 Sales Less expenses: Cost of goods sold $330,000 Selling and administrative expenses 90,000 Interest expense (includes depreciation of $15,000) Total expenses 5,000 Income before taxes Income tax expense Net income Note: Cash dividends of $68,000 were paid during 2012. $500,000 425,000 $ 75,000 30,000 $ 45,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Wages payable Current notes payable Common stock Retained earnings Total liabilities and stockholders' equity $ 30,000 $ 35,000 4,000 3,000 5,000 3,000 50,000** 60,000 110,000*** 100,000 61.000 84,000 $260.000 $285.000 During 2012 cash payments for building and equipment $15,000. **During 2012 cash paid for retirement of notes payable $10,000. ***During 2012 cash received from issuance of stock. Rocket Company Sales Less expenses: Rocket Company Income Statement For the Year Ended December 31, 2012 Cost of goods sold Selling and administrative expenses (includes depreciation of $15,000) Interest expense Total expenses $330,000 90,000 5,000 Income before taxes Income tax expense Net income Note: Cash dividends of $68,000 were paid during 2012. Required: a. Prepare the statement of cash flows for 2012. b. calculate 2012 ending cash balance. $500,000 425,000 $ 75,000 30.000 $ 45.000